Is it concerning? Your Thoughts!
https://www.copyright link/rear-window/shrinking-betmakers-audacious-tabcorp-bid-20210601-p57x34

Shrinking BetMakers’ audacious Tabcorp bid

What the market giveth, the market can taketh away.We noted last week that what had been BetMakers’ surging share price stood to make legendary bookie Matt Tripp $140 million richer (on paper), if only he could get a “transformational” deal for Tabcorp’s wagering business over the line. Three trading sessions since he revealed his ambitious proposal, we reckon he’ll deserve every penny if he pulls it off.

It isn’t easy for a tiny company trading on a massive multiple to digest a far larger business. And every day’s trading since Friday’s announcement has only made it harder, BetMakers’ own valuation evaporating with the growing number of shares it’ll have to issue to Tabcorp’s shareholders to get the deal over the line.It’s structured such that BetMakers would pay $1 billion cash, and then issue Tabcorp’s current shareholders with BetMakers shares to the value of what remains of the $4 billion deal. The precise number of such shares would be determined when a deal was signed but their valuation would equate to a fixed $3 billion.

With roughly 1 billion shares on issue, Betmakers in Friday’s release gave the example of it having to issue another 1.8 billion to reach the mooted valuation. As if.Its shares were as of Tuesday some 28.6 per cent lower than they had been on Friday. So Betmakers would have to issue not 1.8 billion shares, but 2.3 billion to achieve the same $3 billion transfer. And that’s assuming it’s reached the bottom.We suppose making as much money as Tripp could shouldn’t come easy.